U.S. Agency for International Development (USAID)

United States government agency with the explicit dual purpose of advancing America's foreign-policy interests and fostering a better quality of life in less-developed countries. Created in 1961 by an executive order from President John F. Kennedy under the Foreign Assistance Act, the U.S. Agency for International Development (USAID) has philosophical roots in immediate postwar America and the plans to reconstruct Europe. At that time, international development assistance was seen as vital and necessary for U.S. political and economic interests. After the expiration of the Marshall Plan's reconstruction initiative in Europe, the U.S. government created multiple programs to manage international aid monies.

USAID's predecessors—the International Cooperation Administration, the Development Loan Fund, the Export-Import Bank, and the Food for Peace program—were often politically stymied or uncoordinated in their [Page 765]efforts. Thus, USAID was created with a mandate to consolidate these agencies and organize and administer all nonmilitary aid to foreign countries. Although USAID is an independent agency, it is still guided by official policies and it reports to the secretary of state.

USAID works to put policy into practice: The agency promotes global health, economic development, and democracy, and it sponsors related programs in agriculture, education, conflict management, and humanitarian assistance. It is the U.S. agency most actively involved in disaster relief, antipoverty initiatives, and encouraging the growth of good governance, either through its own programs or through nongovernmental partners.

USAID actively sponsors health programs in a number of different arenas: maternal and child health, nutrition, family planning, and the reduction of infectious diseases such as tuberculosis and malaria. A major project involves care for those infected with or affected by HIV and AIDS; to date, in fighting the AIDS pandemic, the agency is the largest donor in any organization, public or private. It also supports the Food for Peace program to bring food to the chronically undernourished.

As a party to the Washington Consensus, USAID supports a neoliberal approach to economic development. The agreement concluded that nations seeking to promote economic growth and end poverty should undergo structural adjustment—in the form of deregulation and privatization of industry. USAID gives advice to governments seeking to promote a business-friendly climate but does not seek to intervene actively in the market. Rather, much of its help includes technical assistance: advising states about the creation of stable fiscal, banking, and trade policies; reliable financial institutions; and private property protections. Programs also include information-technology initiatives and support for education.

USAID likewise has a strong political thrust. The agency is charged with supporting ideas and institutions that lead to stable, peaceable, democratic governance in countries with little prior history of civil society. Specifically, the agency supports the development of the rule of law, the creation of written civil and commercial codes, the protection of human rights, the promotion of free and fair elections, active civic participation by the citizenry, government transparency and accountability, and anticorruption initiatives. The agency also provides education about democracy and democratic practices.

USAID has had some substantial successes. It contributed largely to the worldwide eradication of smallpox and supported agricultural research, which had enormous positive impacts wherever it was implemented. At the same time, the agency has participated in less-successful efforts. Past programs were criticized for ignoring cultural differences and for operating inefficiently in their design and implementation. Aid programs in Israel and Egypt have faced particularly severe criticism regarding their effectiveness. The agency, however, has an active evaluation system that supports organizational learning and development. For instance, to become more attuned to cultural considerations, USAID is developing a “listen to the customer” strategy. In this way, it is improving its ability to advance the interests of the United States and the countries it serves.

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